FBM 1598.17 -9.71pts (-0.60%) Volume 1,144mil Value RM1,676mil
1) KLCI slipped below the 1600 psychological level as local market continued to buck the regional markets which were positive after Greecefinancing were given a lifeline with European finance ministers cuttingborrowing costs. Index fell over the day and close near its day's low of 1596.58 (-11.30pts) as election fears continued to see investors shy from the market. Market breadth was negative with decliners trashing advancers 563:188. Future closed 1598 (parity).
2) Heavyweights: AXIATA-2.26% RM5.62, PETGAS-5.7% RM17.10, CIMB-1.05% RM7.50, PBBANK-0.39% RM15.38, DIGI-0.66% RM4.55, TENAGA-0.58% RM6.90,UMW+2.18% RM10.32, GENM+1.74% RM3.51
1) DBT: PASUKGB 5.82mil @ RM0.30 (1.97% PUC, 5.26% premium), DIJACOR 4.2mil @ RM1.00
4) Situational:
PETGAS-5.7% RM17.10: Among the major decliners following downgrades from analyst after PETGAS announced delay in commencement date for its liquefied natural gas regasification facility in Sungai Udang, Melaka. It is expected to be commissioned by the end of Q2
5) PCHEM
9mths Tover +1.1% RM12.2bn Net -17% RM2.85bn EPS 33sen
In line with cons(f) RM3.74bn
Weaker demand for its olefin products led to lower product prices for most olefins and derivatives products. However the olefins and Derivatives business segment recorded higher plant utilisation and volumes with lower level of plant maintenance activities this period. The segment recorded revenue of RM8.9 billion,lower by RM272 mil or 3% as the impact of lower prices offset the higher volumes achieved. Profit for the period was lower by RM676 million or 25% at RM2.0 billion. This follows lower operating profits in line with higher feedstock prices and lower product prices, as well as lower contribution from an associate company amidst challenging market conditions.
In its fertiliser and methanol market, conditions were more robust with higher market prices for both urea and methanol. Urea prices were supported by healthy demand for agriculture consumption. Higher methanol prices was driven by tight supply in the market following shutdowns and lower operating rates at several production facilities as well as embargo on Iran cargoes. The Group's Fertilisers and Methanol business segment recorded lower plant utilization and volumes due to heavier plant maintenance activities during the period. Higher prices in line with market countered the effect of lower volumes. Consequently, the segment attained revenue growth of 6% at RM3.5 billion. Profit for the period was, however, lower by RM21 million or 3% due to higher product purchases to mitigate system shortfall as well as a once-off adjustment relating to amortisation expenses.
The Group's VCM and PVC plants in Malaysia will continue its operations until 31 December 2012, after which decommissioning activities will commence. The decommissioning activities are expected to take place over the next two to three years.The Group will initiate a divestment process for the sale of its 93.1% interest in its PVC plant in Vietnam. As a consequence of the discontinuation, the Group is expected to record a charge of approximately RM560 million in the fourth quarter of 2012, mainly relating to provision for decommissioning and site remediation expenses, provision for contract termination dues and impairment expense
6) Market - The technical breakdown by the KLCI below the psychological support of 1600pts could possibly trigger further selling to its next support of 1580pts unless bargain hunting return in the next few days to push it back above these critical levels.
